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Teradata Stock Fell 7% despite Earnings Beat

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TDC stock fell more than 7% last week

Teradata (TDC) stock fell 7.1% in the week ended May 4 to close at $38.06 per share. The stock generated returns of 31.0% in the last 12 months and -4.5% in the last month after rising more than 41.5% in 2017. Teradata is trading 41.0% above its 52-week low of $27.05 and 11.2% below its 52-week high of $42.84.

Teradata stock fell despite the company beating earnings estimates in 1Q18. Teradata reported revenues of $506.0 million, above analyst estimates of $496.0 million. Its non-GAAP (generally accepted accounting principles) EPS (earnings per share) fell 19.0% year-over-year to $0.19. Its earnings per share were, however, higher than average analyst estimates of $0.16 in 1Q18.

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Teradata’s recurring revenues rose 11.0% YoY (year-over-year) to $302.0 million, driven by an increase in subscription revenues. Its perpetual software license and hardware revenues fell 23.0% YoY to $69.0 million. Teradata attributed this fall to its transition toward a subscription-based revenue model. TDC’s third business segment, Consulting Services, saw a revenue rise of 5.0% YoY to $135.0 million.

Teradata trading close to oversold territory

Teradata’s 14-day MACD (moving average convergence divergence) is 0.11. A stock’s MACD marks the difference between its short-term and long-term moving averages. TDC’s positive MACD score indicates a downward trading trend.

Teradata has a 14-day RSI (relative strength index) score of 26, which shows that the stock is trading well into oversold territory. An RSI score above 70 indicates that a stock has been overbought, while an RSI score below 30 suggests that a stock has been oversold.

Of the 22 analysts tracking TDC, three recommended a “buy,” 13 recommended a “hold,” and six recommended a “sell.” Analysts’ 12-month average price target for TDC is $38.47, and their median estimate is $39.00. TDC is trading at a discount of 2.5% to analysts’ median estimate.

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